By Lynford Simpson, Parliamentary ReporterE. G. HUNTER, president of the National Water Commission, says that a management retreat to review the recommendations in a KPMG Peat Marwick audit of the water utility, is scheduled for tomorrow and Friday in Ocho Rios, St. Ann.
He said the retreat would be attended by consultants and representatives of the five unions representing the roughly 2,000 employees of the state-owned NWC.
"We've set ourselves two days in which to conclude our deliberations. It is our hope that, come Friday evening, we will be at a position where we can jointly say that the NWC management and unions ... are comfortable with the recommendations of the audit and that we will move speedily towards the (implementation of the) recommendations...," Mr. Hunter said.
He said this at yesterday's sitting of the Public Accounts Committee of Parliament, where the records of the Ministry of Water and Housing and its agencies were examined.
Mr. Hunter said the audit was commissioned by the NWC's board to look at the "systems, structures, management practices and other related management issues..."
CONSULTATIONS ARE ON-GOING
It was done over a period of 18 months and the final draft report has been submitted to the commission's management. Consultations are on-going with the major stakeholders, including the Office of Utilities Regulations (OUR).
Mr. Hunter said the retreat would provide an opportunity for all the parties involved to sign off on the recommendations.
"Unless our unions are fully on board then the prospect of a smooth implementation of the recommendations of the audit will at best be tenuous," he noted.
He confirmed that the audit has recommended a "rationalisation of staff numbers" and the creation of two new vice president positions. He said that rationalisation was predicated on modernisation and reorganisation.
When asked by Audley Shaw, the PAC chairman, whether "modernisation" and "reorganisation" were euphemisms for "staff cuts", Mr. Hunter replied: "Your words, Mr. Chairman."
The Gleaner reported last month that up to 20 per cent of the NWC's staff could be made redundant and that the retrenchment segment of the restructuring could cost an estimated $190 million.
Also, the audit found several weaknesses in the operations of the NWC, covering internal audit, legal affairs, finance and administration, human resource and information and systems departments.
In terms of the information and systems department which covers preparation of water bills for more than 300,000 customers, the audit found a lack of up-to-date equipment and tools, continuously changing technology which made systems and skills quickly obsolete and a low level of computer knowledge and skills among the users of the technology.
PREMATURE
Mr. Hunter said it would be premature for him to make any announcements now, but predicted that the NWC would realise at least $200 million in savings in the short-term, if the recommendations of the audit were implemented.
He told the PAC that the recent hike in electricity rates would impact on the NWC's operations. However, he refused to be drawn on when water rates would be increased or by what percentage.
